The number of Surveyors property price falls has risen for the 9^th month in a row…

In the latest survey from the Royal Institution of Chartered Surveyors (RICS), 95.1% of surveyors saw house prices fall than rise in April.

That figure is up from 79.4% in March, with all surveyors in East Anglia, and the North and North West of England, reporting price falls.  There has also been a continued fall in enquiries from prospective buyers.

The RICS shows price falls are far more widespread than at any time since 1978 and is further confirmation that house prices in the UK are now declining after a decade long boom.

Very real implications

RICS spokesman Ian Perry commented: “The number of house sales being completed over the last 3 months has fallen significantly, with an average of just 18 sales per surveyor.

“The real issue, however, is the collapse in the number of housing transactions. This has very real implications, not just for the property industry but also the High Street and the wider economy”.

Mr Perry conceded though that the scale of house price falls was still "relatively small" compared to past downturns, adding: "Large numbers of distress sales - either repossessions or sales from those attempting to avoid the repossession process - have not yet appeared in the market place.

"While mortgage arrears remain low and the employment situation remains strong, the lack of supply will continue to prevent large declines."

Return to a steady market?

Peter Bolton King, Chief Executive of the National Association of Estate Agents (NAEA), argued that the house price falls were merely ‘modest’: The house prices falls that are taking place are modest and the picture is still patchy with some areas of the country finding it tougher than others. 

“There is no denying that the credit crunch has affected confidence in the market – especially first time buyers who are finding it hard to find financing to get on the ladder - but it is still important to remember that the underlying factors that support the property market remain: low unemployment, historically low interest rates and a pent-up demand for houses. 

“Therefore, rather than a dramatic fall that some doom and gloom merchants are predicting, it shows we are looking at a return to a more steady market rather than the fantastic price hikes we have seen in the previous 10 years.“